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Incheon International Airport Opens Korea’s First Arrivals Area Duty Free Store
- Cosmetic and alcoholic beverage products available, but not tobacco... 2 places at Terminal 1 and 1 place in Terminal 2 for a total of 3 areas –
□ The Ministry of Economy and Finance (Minister Hong Nam-gi), MOLIT (Minister Kim Hyun-mee), Office for Government Policy Coordination (Minister Noh Hyeong-ouk) and Incheon International Airport Corporation (CEO Koo Bon-hwan) held the opening ceremony for Korea’s first arrivals area duty free store at passenger terminal 2 on May 31 (Fri).
□ A total of three arrivals area duty free stores will be operated at Incheon Airport made up of two at passenger terminal 1 and one at passenger terminal 2 considering the flow of passengers.
ㅇ Passenger terminal 1 will operate two stores (380m2, 190m2 x 2) on the east and west side of the central baggage claim area on the first floor and it will be operated by SM Duty Free as a small and medium-sized business, and there will be one store (326m2) in the center of the first floor at passenger terminal 2, which will be operated by the medium-sized business, Entas Duty Free.
ㅇ Items available for purchase will be perfumes, cosmetic products, spirits, and other items popular among customers, as well as health food and fashion accessories, while excluding tobacco and items subject to quarantine.
□ It is expected that by establishing the arrivals area duty free store, it will be felt hugely by citizens in that they may purchase duty free goods upon arrival instead of having to purchase the items at the departure hall duty free stores and carry it with them throughout their journey abroad.
ㅇ Furthermore, the Incheon Airport arrivals area duty free store will be operated in a way to foster small and medium businesses and to fulfill the social responsibilities of a public corporation.
- Only small and medium businesses were allowed to bid for this new business, and in order to lower the burden of businesses, the basic facilities, etc. were built and provided by Incheon International Airport Corporation.
- In addition, over 20% of the store area will have to be designated for products manufactured by domestic small and medium-sized businesses, and it will provide support for product PR and expansion of distribution networks for small and medium companies.
- The lease and concession income of Incheon Airport that amounts to approximately 20 billion KRW annually, will be used for social benefits purposes such as creating jobs in the aviation industry and creating social values.
□ Deputy Prime Minister and Minister of Economy and Finance Hong Nam-gi assessed that, “The implementation of the arrivals area duty free stores is the result of bold regulatory reforms to address discomforts felt by citizens from the perspective of citizens.”
ㅇ He also explained that while addressing the discomforts of citizens who had to carry around items they purchased at duty free stores throughout their travels, international trade balances will be improved by guiding overseas consumption to domestic consumption, and that this could also help create about 600 new jobs as well.
ㅇ In addition, he said, “In order to make the regulatory innovations for implementing arrivals area duty free store to become a blueprint for innovating the service industry, the government will announce the ‘Service Industry Innovation Strategy’ in June and concentrate all of the capacities of the government to pursue this goal.”
□ Second Vice Minister of Land, Infrastructure and Transport Kim Gyeong-wook said, “With international airports in nearby countries that compete with Incheon Airport implementing and expanding arrivals area duty free stores, the new arrivals area duty free store will serve as an opportunity to upgrade the service competitiveness of Incheon International Airport.”
ㅇ He added, “while stabilizing operations as soon as it is opened to enhance convenience for citizens, we will continue to provide support so that operators and industry workers can all have a win-win relationship.”
□ After the pilot operation and evaluation (6 months) of the arrivals area duty free store at Incheon Airport, the government plans to expand this to other major airports around the nation.
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